Red Cat (NASDAQ:RCAT) Stock Price Up 7.3% - What's Next?

Key Points

• Red Cat shares rose 7.3% to $8.86, with about 12.3 million shares traded. The stock remains below its 50-day and 200-day moving averages of $10.16 and $11.96, respectively.
• Analyst sentiment is broadly positive, with a consensus “Buy” rating and an average price target of $21.40, although ratings range from “Strong Buy” to “Strong Sell.”
• The company’s latest quarter fell short of expectations, reporting a $0.22 per-share loss and $15.47 million in revenue, despite revenue growth of 849.1% year over year. A director also sold 165,028 shares at an average price of $11.50.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares were up 7.3% on Tuesday . The stock traded as high as $9.04 and last traded at $8.86. Approximately 12,319,962 shares were traded during trading, a decline of 12% from the average session volume of 14,039,966 shares. The stock had previously closed at $8.26.

Analysts Set New Price Targets

RCAT has been the topic of a number of research reports. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. LADENBURG THALM/SH SH raised shares of Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. HC Wainwright began coverage on shares of Red Cat in a research note on Wednesday, May 27th. They set a "buy" rating and a $20.00 price objective for the company. Wall Street Zen cut Red Cat from a "sell" rating to a "strong sell" rating in a report on Saturday, July 18th. Finally, UBS Group assumed coverage on Red Cat in a research report on Wednesday, May 27th. They issued a "buy" rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $21.40.

Red Cat Trading Up 7.3%

The company has a market cap of $1.09 billion, a P/E ratio of -12.66 and a beta of 1.32. The business has a 50 day moving average price of $10.16 and a 200-day moving average price of $11.96.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The firm had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. Red Cat's revenue was up 849.1% compared to the same quarter last year. On average, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 12.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the company. State Street Corp increased its position in Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company's stock worth $52,434,000 after buying an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company's stock valued at $47,580,000 after buying an additional 493,660 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Red Cat by 13.4% during the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company's stock worth $19,991,000 after acquiring an additional 297,967 shares during the period. Davidson Kempner Capital Management LP bought a new position in shares of Red Cat during the 3rd quarter worth approximately $17,286,000. Finally, Renaissance Technologies LLC bought a new position in shares of Red Cat during the 1st quarter worth approximately $18,533,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Company Profile

Red Cat Holdings, Inc NASDAQ: RCAT is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source